Busting the myths: Public sector clients aren't worth the effort
Are you struggling to grow your business? At the moment a lot of business owners I speak to are struggling to grow their businesses? Most business owners I speak to have not given much consideration to selling to the public sector. Why would you? It’s complicated, your business is too small, the cheapest supplier will always win, the reasons not to go on.
What if I told you, these were myths? That the public sector wants to buy from you! Join me over the next few weeks while I bust these myths, you can even go back and look at the myths I’ve already busted here.
The myth I am going to debunk this week is that public sector clients aren’t worth the effort.
MYTH #5: public sector clients are not worth the effort.
The reality of this myth is that on average the UK Government spends on average £292 billion a year. More than 1/3 of all public spending, on purchasing goods, works and services from external suppliers. This translates to around 50,000 new business opportunities a year for many different sectors.
Those unfamiliar with the formal tendering process can find it cumbersome. However, like anything new, it takes practice to become familiar and more efficient in tendering. You may still be sceptical and unsure if it is worth the effort. Below I’ll outline some reasons why I believe it is worth the effort and will help you to grow your business.
Suppliers must be paid within 30 calendar days. Yes you read that correctly but it gets better. The government require the ENTIRE public sector supply chain to pay suppliers within 30 calendar days. Some departments will pay valid invoices within 5 working day. In Scotland the public sector pays 99% of valid invoices within 10 working days.
Can you imagine that cash flow?
The government is committed to making buying from SMEs simpler. The requirement for the pre-qualifying questionnaire has been removed for low-value contracts in England. In Scotland a procedure called Quick Quotes can be used for low value contracts (in Scotland low value contracts are those worth less than £50,000 for goods and services).
Public sector clients have to adhere to strict guidelines around fairness and transparency. Nothing is hidden and all decisions must be made transparently. This means you should receive feedback if you have been unsuccessful with your submission.
Contracts must be open and accessible. This means that no matter what size your business is, if you meet the criteria and can deliver the contract, you have a fair chance of winning the work. This differs from private procurement.
TOP TIP
Public sector procurement may be perceived as cumbersome and can be time consuming. However, choosing the right opportunities for you and your business is crucial. Take time to consider how you want to grow your business over the next 1, 3 and 5 years. This will help inform what are the right opportunities for you going forward.
